> part of my point is that the classical expectation might not be accurate.

That’s also part of my point. 

> It's not obvious to me that poor peoples' demand curves (for the things they actually buy) are more elastic than the rich

Yeah, there could be some interesting Giffin type dynamics, too, in cases where poor people are budget constrained into buying particular goods.

Undisciplined

I think the classical expectation here would be that poor people would keep paying low prices and rich people would see the higher prices, to the extent that willingness to pay corresponds to budgets.

Right but I think part of my point is that the classical expectation might not be accurate.  There are plenty of products where the poor end up subsidizing the rich for whatever reason, like credit cards.  It's not obvious to me that poor peoples' demand curves (for the things they actually buy) are more elastic than the rich, as they may have less time or ability to shop around for the best deals or otherwise optimize their way around the system

Politics_And_Law

econ

FTC Seeks Comment on Enforcement Policy Statement Regarding Personalized Pricing

jakoyoh629

> I think the classical expectation here would be that poor people would keep paying low prices and rich people would see the higher prices, to the extent that willingness to pay corresponds to budgets.

Right but I think part of my point is that the classical expectation might not be accurate.  There are plenty of products where the poor end up subsidizing the rich for whatever reason, like credit cards.  It's not obvious to me that poor peoples' demand curves (for the things they actually buy) are more elastic than the rich, as they may have less time or ability to shop around for the best deals or otherwise optimize their way around the system